Stability and Portfolio Diversification
While the stock and bond markets may swing up and down with the news of the day, real estate values tend to be much more stable, and have a low correlation with the publicly traded stock and bond markets.
Real estate values may fluctuate some due to demand and economic conditions, but by and large the values increase over time at a steady pace. In contrast, Real Estate Investment Trusts (REITs) move much like the stock market and do not offer the advantages or tax efficiency found in Syndicated Real Estate Investments.
Multi-family properties are the most stable of all commercial real estate due to having many tenants and the leases are short term and can be adjusted to reflect the market increases as they expire. This is built-in inflation protection for the investor.
Owning physical assets like multi-family real estate in a syndication stabilizes your investment portfolio and provides a steady stream of income to meet current needs and helps to stabilize your portfolio.
It is worth noting that Andrew Carnegie said “Ninety percent of all millionaires become so through owning real estate.”
